Program Operations Manual System (POMS)

NL 00703.601 Instructions for Preparation of SMI Only Award Notice When a Beneficiary is Eligible
for Reduced Premium HI

A. POLICY

SMI beneficiaries who have 30 QCs and are therefore eligible for reduced premium HI
must be notified of their eligibility and the reduced premium amount. Because the
reduced premium rates and language are not yet automated, notices must be sent manually.

B. PROCEDURE

1. FO Action

FOs will designate incomplete (“I”) notices.

2. PC Actions

PC adjudicators will:

a.

Review the system-produced incomplete notice.

b.

Instruct the typist to retype the notice, substituting paragraph 3601A for paragraph
MH07.

C. EXHIBIT

Paragraph 3601A

Although you cannot get free hospital insurance, you can buy it for less than the
regular cost. You can get it for $ (1) per month because (2) at least 30 work credits. You can get more information about this by contacting any
Social Security office.